Organizing a large event can be daunting, especially concerning catering. Most people focus on the “per-person” food cost but are surprised by the final bill, which includes service charges, rentals, labor and taxes.
How do you create a catering budget for your event that covers all the necessary expenses?
This guide will provide a five-step process to help you create a realistic, all-in catering budget that covers every essential component.
The big three variables that truly reflect your event needs consist of your guest count, event style and beverage service. Knowing these factors beforehand will save you from surprises later.
Be realistic with your guest count. Instead of dreaming big, focus on confirmed RSVPs or your best estimate of who will truly attend. Overestimating means wasted money, while underestimating risks running out of food. It’s always safer to budget slightly higher, then adjust lower as you get firmer confirmation.
Remember that every additional guest affects:
How you want food served majorly impacts your costs. Buffets often offer a greater variety and are perceived as more relaxed. You’ll need larger quantities since guests serve themselves, but staff requirements are usually lower.
Plated services, in contrast, tend to be more formal and streamlined, but they require more servers, which increases labor costs. Discuss with your caterer which service style best suits your budget and event vibe.
Bar or beverage options are a major wild card that can make or break your catering budget. Here are three common options to consider:
You can also use drink tickets or capped open bar hours to control consumption and cost without eliminating fun.
When asking for quotes, the foundational number you’ll hear is the cost per person. This is the starting point for calculating your total spend on food and beverages. The price per person usually includes your selected menu items like entrees, sides, salads and basic beverages. Premium proteins, such as filet mignon and seafood, will cost more than chicken, pasta or seasonal vegetarian options.
If you have 100 guests and choose a menu priced at $75 per person, your food and beverage subtotal will come to $7,500.
After calculating your base food and beverage costs, you must factor in three extra charges that most caterers include.
Also known as the admin fee, the service charge is a mandatory fee — typically ranging from 18% to 25% — added to your food and beverage subtotal. It covers behind-the-scenes expenses such as event planning, insurance, kitchen labor, delivery and basic equipment usage.
This means that if your food and beverage subtotal costs $7,500 and the service charge is 22%, you’ll pay a combined total of $9,150 for the food and services.
These costs include any servers, bartenders and chefs needed to run your event. Sometimes they are included in the service charge, but many times they are itemized separately. Always ask if on-site staff are included in the catering pricing. If not, ask how much they cost and how those expenses are calculated.
Some caterers make tips for the front-line service staff working at your event optional. Others may add tips automatically to your bill, especially if it’s a longer event. Clarify with your caterer whether gratuity is required or expected and whether it’s already included in your estimate. Sometimes proposals list service charge and gratuity separately, while at other times, they are listed together. You can budget 15% to 20% of your total food and beverage expenses for gratuity.
Many essential items aren’t always included in your catering quote. Create a dedicated checklist and ask your caterer or venue which items are included and which you’ll need to rent separately:
Use your caterer’s in-house supplies wherever possible, as these are often included in your package or rented at a lower bulk cost than specialty or custom rentals.
State and local sales tax applies to your entire catering bill, including the service charge. These rates vary by location and are a mandatory charge on almost every catered event.
After calculating your full budget with tax, it’s essential to add a 10% contingency buffer. Events almost always have some unexpected costs — such as a few extra guests, additional meals for vendors, forgotten rentals or changes in bar orders. If you only use part of your contingency fund, it provides you with some extra funds for a last-minute event upgrade.
At Amici’s Catered Cuisine, we believe in 100% transparency. We’ll walk you through every line item so you can build the perfect event for your budget. Contact our team today to receive a clear and comprehensive proposal.
